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P&G: Case Study

Satisfactory Essays

P&G: Case study

Key performance gaps
In 2005, the renowned pharmaceutical giant P&G was restructured into three interdependent global organizations, one organized by product category, one by geography, and one by business processes. During its earlier history, the company had been quite successful in generating synergy between knowledge and best practices. However, P&G had begun to lag in keeping up with customer demand in terms of generating new products and bringing existing products to the global market.
To achieve greater unity as a company while still respecting the needs of regional consumers, the company had been reorganized in 2005 into Global Business Units, whose primary responsibility was for product development; Market Development Organizations with a primary responsibility for market management, and a Global Business' Services unit responsible for managing internal business processes (Piskorski & Spadini 2007: 8). Each unit operated autonomously while Market Development Organizations (MOOs) localized P&G's national strategy (Piskorski & Spadini 2007: 9). A Global Business Services (GBS) unit had the responsibility to "standardize, consolidate, streamline, and ultimately strengthen business processes and IT platforms across GBUs and MOOs around the world" (Piskorski & Spadini 2007: 10). HR was also streamlined. However, the pipeline of products-to-market still lagged, and P&G's revenues continued to fall behind its rivals. Its stock price and overall

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